Which of the Following Is Not a Key Element of the Sarbanes

question 6

Multiple Choice

Which of the following is not a key element of the Sarbanes Oxley Act to improve corporate governance?

• A)The establishment of the Public Company Accounting Oversight Board
• B)Requiring a company's annual report to contain an internal control report that includes management's opinion on the effectiveness of internal control
• C)Severe criminal penalties for retaliation against "whistleblowers"
• D)Requiring that the company's performance reports are prepared in accordance with generally accepted accounting principles

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Definitions:

Owners' Equity

The residual interest in the assets of a company after deducting its liabilities, representing the ownership stake held by shareholders.

Earnings Per Share

A financial ratio that calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Financial Performance

An assessment of how well a company can use assets from its primary mode of business and generate revenues.

Capital Required

The total amount of funds needed to operate a business or undertake a project, including costs for assets, resources, and day-to-day operations.